How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask MShore Law Your Own Question
MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
Type Your Business Law Question Here...
MShore Law is online now
A new question is answered every 9 seconds

My son has a judgement with a finance company. They are harassing

This answer was rated:

My son has a judgement with a finance company. They are harassing him even though he is making his payments every month and they are charging him high interest on his payments. What is the legal limit for interest and how does he stop the harassment?
Thank you for the post, I am happy to assist you by answering your questions. What is the nature of the debt giving rise to the judgment, and was the judgment entered in MI?
Customer: replied 4 years ago.

My son had an accident and this is the balance of what was owed because he did not have gap insurance. The company got a judgement against him for the balance due. He has been paying them $50.00 a month on this judgement and has been paying for well over a year. The last payment made they charged 30.91 in interest and 19.09 went to the principal. The judgement was made in a court in Grand Rapids, MI.

Thank you Linda, when was the judgment entered?
Customer: replied 4 years ago.

On 4/29/2011.The statutory rate on this was 13% from 2/17/2011 to 4/18/2011, if that helps any.

Thank you Linda, you are referring to MCLS §(NNN) NNN-NNNN 13% is the maximum interest, and in order to stop the harassment he should issue a cease and desist letter to the creditor advising that so long as he complies with the terms of the repayment agreement he does not expect such harassment or any contact from the creditor. He should send his letter via certified mail, and threaten to file for an injunction should the harassment persist. Please let me know if you need additional guidance.
Customer: replied 4 years ago.

Can my son ask for a balance on how much he owes and how they are calculating the interest? I am not an expert on interest but it seems they are charging interest on each payment and it amounts to a lot of money going to interest and not much going on the principal to get this paid down.

Yes, at any time he can request an accounting statement to show the balance and how his payments are being applied to the principal. The 13% is annual.
MShore Law and other Business Law Specialists are ready to help you

Related Business Law Questions